Dear Valued Client;
Thank you for your support during these difficult times.
The past six months have been challenging due to the uncertainties created by the CoVid 19 pandemic. Demand for container space has outpaced container capacity and has created unprecedented increases in ocean freight cost.
Historically peak season should be winding down but we anticipate volume to remain strong thru the first quarter of 2021. The China government will restrict the normal travel during the Chinese New Year celebration. Companies will stagger the travel of their employees over several week. We believe this stagged travel plan will slow production for several weeks before and after Chinese New Year. Albeit production make slow during this period one can anticipate space will still be at a premium. Furthermore, equipment shortages, port congestion and infrastructure stress (port capacity, chassis shortages and available inland carriage) will impact the supply chain.
Market will prioritize lift based on contribution to profit and individual trade lane requirements. We anticipate trans-pacific rates to at minimum remain at current level or be subject to a premium on any a must ship cargo/PO in the first quarter with carrier implementing peak season and equipment repositioning surcharges. One can envision that carrier will only accept cargo moving via market rates plus additional charge during the first quarter of 2021.
If you have pending PO we recommend you advance those PO’s for December shipment as we believe rates will be much higher in early 2021 than they are currently.
Our goal remains to offer quality reliable service at market rates. 2021 remains somewhat uncertain, as the pandemic surge may potentially impact retail sales and customer spending.
Please contact your USPTI representative with any questions, problems or concerns.
Thank you for your continued support and we look forward to a long-term relationship of service.